Posted on 03/23/2010 6:59:57 AM PDT by decimon
Los Angeles, CA (March 22, 2010) Providing tax credit incentives to the movie industry to attract filming to non-traditional locations actually has a negative impact on state revenues, according to a study in the latest issue of the Journal of Planning Education and Research.
Many states offer producers tax-based subsidies to help finance film and television productions. Researchers explored the fiscal impacts of the subsidy programs, along with the methods used to calculate job creation and tourism impacts. Also studied was the potential for developing film and television industries outside Los Angeles and New York. The findings illuminate why policy makers need to carefully evaluate the methods used to rationalize public expenditures on incentives for economic development.
The researchers found that film subsidy programs:
* reduce finite state funds usually allocated for other needs * benefit few citizens in one industry while leaving the tax burden to all taxpayers and other industries that are not subsidized * foster a race-to-the-bottom mentality where states continually up-the-ante to "remain competitive"
"The case of the entertainment media industries demonstrates the difficulties involved in sorting out competing claims and evaluating economic impact," write the authors Susan Christopherson and Ned Rightor. "Ultimately, close questioning of those claims may drive policy reform requiring data transparency and substantiation of economic development benefit. Meanwhile, however, the worldwide taxpayer-funded production financing 'gold rush' in entertainment media is still on."
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The article, "The Creative Economy as 'Big Business': Evaluating State Strategies to Lure Filmmakers," published in Journal of Planning Education and Research, is available free for a limited time at http://jpe.sagepub.com/cgi/reprint/29/3/336.
The Journal of Planning Education and Research (JPER), published by SAGE on behalf of the Association of Collegiate Schools of Planning, is a forum for planning educators and scholars (from both academia and practice) to present results from teaching and research that advance the profession and improve planning practice. Covering planning theory, planning practice, and planning pedagogy, it also encompasses disciplines drawn upon by planners such as urban geography, welfare economics, interest-group politics, policy analysis, as well as other subjects used in the planning classroom. http://jper.sagepub.com
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* reduce finite state funds usually allocated for other needs
* benefit few citizens in one industry while leaving the tax burden to all taxpayers and other industries that are not subsidized
* foster a race-to-the-bottom mentality where states continually up-the-ante to "remain competitive"
that is taking a short view of the situation. Once movie companies start building studio’s and hiring trained individuals locally to work in them the revenue starts to flow. It is happening in Michigan.
Is MI governor Granholm listening? She is a big supporter of these subsidied and hand outs.
Yeah, a happening place.
No undue offense but I think the short view is yours.
I know! I can’t believe how many people have been referring to Detroit as “New Hollywood!”
It’s a good fit, as both Hollywood and Michigan continue their downward slide into obscurity caused by liberal ideals.
One of the best Clint Eastwood movies made was shot in Detroit. Grand Torino. A movie company just bought a big building in Pontiac to use as a production company. So do you live in Michigan.
They just shot part of the New Red Dawn at the Ledges in Grand Ledge.
I live in New York. We subsidize things here and look where that’s gotten us.
The story says that the tax credits have reduced overall tax revenues. The headline implies that the desired effect was "the opposite" of this.
Is there any evidence given that somebody seriously thought that the "desired effect" was to enhance tax revenues?
It is called lowering taxes. It works every time it is tried.
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